When Should Builders Risk Insurance Be Purchased?
You should have builders risk bound before materials arrive or work starts, whichever comes first.
Builders risk addresses construction-stage property, and the NAIC definition includes buildings in the course of construction plus certain materials and equipment.
The date may need to precede ground-breaking if building materials will be stored or delivered earlier. US Assure’s application guidance asks applicants to address policy timing and construction stage; its program also requires additional review for submissions made after a stated completion threshold. That threshold applies only to its program.
Give the insurer the expected delivery date, work start, completion percentage, project schedule, and requested policy term. Confirm binding, effective date and time, covered locations, and any underwriting conditions in writing. Coordinate the start with the construction contract and any existing property insurance.
